SEC Sanctions Mini-Tender Firm

The SEC has sanctioned a Phoenix firm that frustrated a handful of closed-end funds with its controversial tactics - known as mini-tender offers - to buy fund shares from individual investors.

IG Holdings allegedly violated federal securities laws because, when offering to buy stock and fund shares, it did not make sure that shareholders received all of the significant information they needed to evaluate IG Holdings' offers, the SEC said in an administrative complaint filed against IG on Aug. 19. IG Holdings was not fined but agreed not to violate federal securities laws again, a promise which requires that IG Holdings insure that investors receive all key information about its offers, according to the SEC.